Jetblue

Business policy

JetBlue Airways

JETBLUE AIRWAYS

INTRODUCTION

JetBlue Airways Inc. (LLC) was founded by David Neeleman in February 1999. In

September 1999, JetBlue was offered 75 landing and takeoff slots at the John F. Kennedy

International Airport (JFK) in New York. On February 11, 2000 JetBlue Airways started its

commercial operations with an inaugural flight from JFK to the Fort Lauderdale airport in

Florida. JetBlue Airways was one of the top airlines in the United States, beating out

competitors like Southwest Airlines in profitability and growth. JetBlue’s business was

guided by five key values--safety, caring, integrity, fun, and passion. (Wheelen & Hunger

Pg. 20-2).

In May 2007, Neeleman was asked to step down as CEO and was replaced by David

Barger. Once Neeleman stepped down he was assigned as the non-executive Chairman of

the Board. Neeleman claims that this decision had nothing to with the severe storm that

took place February 2007 which caused the airline to have a service breakdown and

serious financial repercussions, which jeopardized JetBlue’s image as a customer-friendly

airline and tarnished its reliability.

BACKGROUND

From the start, JetBlue although it was a LCC, it was considered to be a “value

player”, JetBlue aircraft were furnished with leather seats, which cost more, but would last

longer. The airline served light snacks instead of regular food. It estimated it saved about

$3 per passenger. The key to JetBlue’s operation was low costs, it did not purchase older

planes, but instead they were outfitted with new A-320 aircraft, which require less

maintenance, more fuel efficient and had a five year warranty. By operating the same

aircraft reduced the cost of pilot training, maintenance, and spare parts.

JetBlue only flew...